Super Coffeemix, the Singapore-based instant coffee producer, is to form a joint venture with China Lifestyle, a dessert manufacturer, to market snackfoods in China.

The US$5m joint venture will be based in Tianjin and will produce and market products such as potato chips.

David Teo, chairman of Super Coffeemix, said: "There are significant opportunities for a new local entrant to explore the chip market. We have experience in making chips and China Lifestyle has a strong brand name; we believe this is a good tie-up."

With the Chinese snack market reaching around CNY25.2bn (US3.17bn) in 2005, the companies are aiming for the new venture to achieve annual sales of CNY1bn within five years.